Few societies in the world have been so positively transformed by the economic opportunities arising from globalisation as Ireland. Countries get rich from trading, and small countries get rich quicker when they can escape the limitations of their own small domestic market by trading with the rest of the world and getting their message heard beyond their borders.
The heyday of globalisation has been from 1990 to now, although things are changing with trade wars, nativism and protectionism. Countries like Ireland have a lot to lose if the world gets smaller.
If you look at the enormous social uplift that has been achieved in Ireland since 1990 – in education, health, longevity – most of it can be put down to having new trading opportunities.
The facts are pretty stark. When we were closed off, Ireland recorded the slowest per capital income growth of any European country between 1910 and 1970. We were just about keeping up with the United Kingdom – then a country in serious decline. In the 1980s, Ireland’s lamentable performance continued, evidenced most starkly by another surge in emigration.
Then things turned around. As we opened up to the world, the economy started to tick. From having had the slowest income per capital growth in Europe from 1910 to 1970, we have delivered by far the highest growth from 1990 to now, outstripping the rest by a factor of two. Ireland’s income per head grew twice as fast as the EU average during the period of globalisation.
Social progress
Economic growth in itself is not the objective of economic policy. In fact in modern economics, there is a weakness for seeing economic growth as the be-all-and-end-all. It is not; but growth is a gift that facilitates social progress.
Economic growth provides the resources to achieve other goals. Growth running twice as fast as that of your neighbours allows you to catch up in so many areas.
Economic growth has allowed life to improve dramatically in Ireland for the vast majority of people. This is probably best captured by the fact that based on the comprehensive UN Human Development Index, Ireland has surged from being the 24th most developed nation in the world in 1990 to the fourth most developed today.
This week we learned that Ireland is ranked in second place in the Good Country Index. The index of 153 countries measures what each contributes to the “common good of humanity and what it takes away, relative to its size”. A country’s placing on the list is determined by its contribution in a range of categories – science and technology, culture, international peace and security, world order, planet and climate, prosperity and equality, and health and wellbeing.
Globalisation has facilitated growth, which allowed other development objectives to be achieved, as captured in the UN Human Development Index. At the same time, it has allowed the country to develop “soft power” and project that power on to the rest of the world, as captured in this “common good” indicator. All this stems from open markets for trade, talent and capital.
The economy can’t grow unless we are selling more to more people who are prepared to pay more for it. In short, nothing happens commercially until something gets sold. Selling is the commercial spark from which so much else flows. Despite being regularly pilloried, the humble salesman is the essential alchemist that makes the modern economy tick.
If a country has stuff to sell, in a big open market, then we are half way there. This is why globalisation has been crucial for small countries such as Ireland, Denmark, Finland, Thailand, South Korea, New Zealand, Austria and the like. The salespeople of these countries are the unsung heroes.
Now globalisation is threatened not just by Brexit’s antics with the European Union and Donald Trump’s antics with China but by what the Economistmagazine last week called “slowbalisation”.
Global integration
Slowbalisation suggests that the process of global integration is moving into reverse. During the heyday of 1990 to 2010, globalisation was driven by falling transport costs as oil prices fell, production of ships and planes expanded, the costs of telecoms dropped virtually to zero, tariffs were slashed and companies set up all over the world to be closer to the big new markets.
And of course immigration surged.
For example, from having had practically no immigrants to speak of in 1990, Ireland now has a higher percentage of foreign-born citizens than the UK. Last year, 54,000 new immigrants arrived in Ireland. That’s 1.14 per cent of the total population.
Brexit Britain took in 26 per cent fewer as a proportion of population. Italy took in 0.5 per cent of its population as new immigrants – less than half the Irish proportion.
Globally, since 2010, these trends towards more integration have slowed and the reaction against them, as seen in the growth of populist parties, has increased dramatically.
One in four Europeans today casts their ballot for populists of one stripe or another. Since 1998, when populist parties commanded a mere 7 per cent of votes across the continent, support for populists has surged to over 25 per cent – predominantly on the far right of the political spectrum.
Today, the number of Europeans living under governments with a populist in cabinet has increased more than 13-fold, from 12.5 million in 1998 to 170.2 million now.
This is all a threat to Ireland because we have done so well from being able to transcend the limitations of geography. Inward investment has continued significantly and, although global trade has never been more integrated, there is now a very real threat. If tariff wars resume, if China goes into reverse, if nativist urges driven by inequality translate into global protectionism, then this could all go into reverse.
Aren’t we the best little country in the world. Yehooo!!
The percentage of world trade represented by the EU is now only 15% and it is shrinking. The ability to use technology and innovation has more to do with wealth creation than membership of the EU which has more to do with protectionism and empire.
If we are fourth in UN index.
Why has their been such an erosion of middle class since 2010 ?
Irritating though Brexit is as I understand it one of the major motivators for it is the ability to do trade deals with the rest of the world which wouldn’t contribute to slowbalisation? Not that that helps us much :-(
One of the problems with globalisation is that “money never sleeps”. When it’s awake it might be working but it’s also moving and large multinationals have turned sovereign states into tax-whores. We in Ireland have benefitted from globalisation but, let’s be honest, we have done so largely because of our low corporate tax rate. Money/property now “earns” more in the global economy than does labour. Then to add insult to injury our government (and many other governments) tax labour not wealth. A company doesn’t have children, doesn’t get hungry etc yet when it has paid all its bills it only… Read more »
Jaysus – aren’t we great!
Immigration is a real problem in many countries such as the UK. We have been lucky in Ireland to avoid the problems others have faced. I was speaking to me cousin recently, who lives in a large city in England. Almost everyday on her way to work the she sees the immigration services van driving around the estate filling up on people to deport. All from outside the EU. Look at what Australia have done with there island camps where people spend decades, waiting to be ‘processed’. If Ireland it to protect its benefits from globalisation, we should help find… Read more »
David thinks the transformation of Ireland has been ‘positive’. It has not, rather Ireland has ceased to exist. Or put another way, Ireland has been turned into Non-Ireland, which is what the likes of Desmond Fennell was warning about more than thirty years ago. Cheap, transient wealth is no substitute for real culture. All we are left with is the worthless ‘creativity’ that Higgins drones on about: fashionable, derivative, intellectually and emotionally sterile and shoddy. ‘Social growth’. The idea that Ireland has progressed socially is a cruel illusion. Just look at the absence of dissenting voices in the ‘national debate’.… Read more »
Beware the Ides of March Monstrus Selmayronicus.
Dáithíerix the Gael’s adventures in Britannia:
After an unsuccessful rebellion in Britannia led by Queen Boudathatchica the Roman tyrant Bibulous Junker has invaded and conquered Britannia but only after surmounting great difficulties caused by the Britons’ habit of breaking off battle for 15 minutes every half-hour to drink an infusion of dried herbs.
But two villages remain independent – one village in Hibernia called Tír na nÓg and the other village in Britannia called Camalot – or as it is affectionately called by the locals – Camelcach.
The story will continue after the Ides…….
When the Bodhrán and the Lambeg cease to beat we will no longer be.
Walked past a queue of 100 people on sat am lining up to hand over two grand a month to rent two bed apartments at Glaslyn Clontarf on Saturday morning. Ardilaun Raheny will set you back 500 € more.No surprise more twenty eight yr old s live with parents than outside the home they grew up in.Progress?A hard Brexit will flatten the Irish economy, all roads head to Newry!
One villager called Prematurclimax is dispatched to Hibernia to enlist the help of the druid Fintanobollix to supply magic poitín to the Brittonic rebels. It is decided to send the warrior Dáithíerix who is Prematurclimax’s first cousin once removed – and Obolix the Cloch Fhada maker and delivery-man to help transport a barrel of the poitín. But while beating up a Roman galley in the Muir Éireann, Obolix mentions the mission, which is reported to the Roman high command in Britain…..
Every city, town and country in EU/Europe has moved on, developed, gentrified (opened more coffee shops) and shown signs of growing national wealth and more availability of capital since 1990 but costs have gone up frighteningly for everyone too. Some of our similar sized northern EU/European neighbors appear to have a genuine, worthy (admittedly left leaning) aim to protect all their citizens interests and lives. It’s often mentioned how Ireland sits between the USA and Europe, and benefits from both. But which underlying social philosophy is Ireland going to follow. A European, (hopefully) balanced, socially protective one, encouraging commerce and… Read more »
Meanwhile, the druid Fintanobollix’s Brittonic cousin Faragentorix also a druid and part-time kipper salesman – warns Bibulous Junker to beware The Ides of March. He turns out to be right – on the XXIXth March Monstrus Selmayronicus who is Bibulous Junker’s second-in-command and whose sanity is sadly Descendit in Latrina assassinates Bibulous Junker in the Senate. Monstrus Selmayronicus is IV Denarii short of a Solidus and has made his horse Coveneoborus a Consul and Senator Hoganheroicus Tribune of the Pagus…..
In Londinium – the barrel of smuggled poitín is confiscated by the Romans from a pub cellar owned by the gimp Dipsomaniax – along with all the barrels of warm beer and boxes of chateau-cardboard. The Roman army sets about tasting everything to find which one has the poitín and soon the whole maniple is hopelessly banjaxed. Whereupon Dáithíerix and Obolix steal all the barrels labelled “Dipsomaniax” – but Obolix is himself molto umbriago and starts a scrap with some Roman legionaries. During the commotion a passing knacker steals the cart with the barrels. Prematurclimax and Dáithíerix leave Obolix at… Read more »
Obolix wakes up in the Tower of Londinium and frees Dipsomaniax and after a search to find the poitín they discover it has been used as a pick-me-up for a camógaíocht team….
Falsus in uno – falsus in omnibus.
Hi David, I love when you speak of growth globalisation and and our economy. Let me help you in that regard;
Growth in homelessness;
https://www.thejournal.ie/homeless-ireland-4-4097015-Jun2018/
Growth in the working poor;
https://www.irishexaminer.com/breakingnews/ireland/number-of-working-poor-on-the-rise-despite-upturn-in-economy-892614.html
Growth in the
number of people on hospital waiting lists;
https://www.irishtimes.com/news/health/new-record-of-more-than-718-000-patients-on-waiting-lists-1.3628584
Growth in the national debt;
https://www.independent.ie/business/world/our-public-debt-levels-are-still-growing-even-in-the-midst-of-these-good-times-36854705.html
One sided article as usual Dathi………………………………………………
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1st
Feeling DE-MORALISED
–>
LOST UR MORALS by falling for either ot the Falsities — Communizm or Financializm — of that deceptive Marxist version of Hegelian Dialectic view of Meta-History
–>
Feeling more DE-MORALISATION [ Now,- with addition of subliminal sense of guilt ] ;
But,- cannot just figure out “the Where”, & “the Why ?” & “the By Whom ?” … yet.
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2nd
Allowed ur nation to undergo DE-STABILISATION
“A nation divided CANNOT stand.”
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3rd
Ur Country in CRISIS
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4th
NORMALISATION, … thanks to talented vacuous hypocritical wordsmiths
Welcome to THE NEWEST NEW NORMAL
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Forlorn SO-CALLED Nativists ; Yellow-Vests / Gilets-Jaunes . VICIOUSLY ATTACKED BY . PRIME-EVILS ; Hom… Shock-Troops of Rothschild Puppet Mr. President Macron >>>>>>>>>>>>>>>>>>>>>>>>>> HEADING ; Witnessing State-Sanctioned Violence during Paris Gilets Jaunes March Acte XII By wmw_admin ; on February 5, 2019 ; Vanessa Beeley – Patreon ; Feb 4, 2019 . 2nd February 2019 – Acte XII March in honour of victims of French state sanctioned violence. . EXTRACT ; Man is Shot in the Face and Arrested Paris – Place de la Republique. This video shows the moment a man, who is not provoking police, is shot by… Read more »
Just when ur BALLS are about to fall with u into the Fires of Hell,- here comes a surprise “Well,- come up & see me sometime ; I’ll straighten ur putter” letter from Ms “GlOBALISATION” Groupie herself ;
.
Ms. Kill-ary Rodham [ Later to become Mrs. Kill-ary Clinton ]
So who is better off with globalization.? What has Ireland being in the Eu/Euro had to do with anything? Was not Greece, Italy, Spain etc in the same ambit. Why are so many countries running huge deficits. Why are so many more people and corporations and countries in deeper and deeper debt? Is it the monetary system that is globalized? Has the debt been globalized. Are the political structures globalized too? People do not rise up against their governments when well fed and watered. Why are they rising up now? Perhaps the well being is all an illusion. Everywhere I… Read more »
“MEDICINE-BALISATION FOR UR IGNORANCE” / “AWAKENING TO THE TRUTH” . KNOW THIS ABOUT JUST 1 ASPECT OF GLOBALISATION AFFECTING THE IRISH STATE ; . IRISH STATE IS IN PROCESS OF FULFILLING ITS GOVERNMENT PLAN TO TAKE IN 1 MILLION AFRICANS . Certainly by the year 2030,- Irish State will have 1 million African immigrants. . Truthist in a recent discussion gave the evidence for this sourced from the Government. …………………………………………………. . HERE ARE SOME HARD FACTS ABOUT THE ECONOMIC COST TO GERMANY FOR SUPPORTING ITS INTAKE OF “REFUGEE” IMMIGRANTS FROM AFRICA & MIDDLE-EAST & INDIAN SUB-CONTINENT . Ref. Germany’s Development… Read more »
When morality is lost and corruption endemic, the corrupt protest themselves as the innocent and the innocent become the victims.
https://www.grnewsletters.com/archive/thedailybell_newswire/The-real-reason-4-cops-got-shot-in-Houston-last-week-654325303.html?e=&u=S6bT5&s=oHMcE4
I’d still vote for Trump. Excellent speech.
https://www.youtube.com/watch?v=O18k-sA7r1I
MARY AIN’T GOT SLOW-BALISATION ON HER MIND . Oft-times Abortion Campaigner / Abortionista & Globalist Ms Mary Robinson [ Hubby said to be Top F…m in Irish State at time of she being inserted in her Aras position ] now HATE-FIGHTING today’s Ether [ 8-) MAN-MADE 8-) “Global Warming” ] . SO IF U “HOMELESS + ROOFLESS” IN IRISH STATE ; ==> U CANNOT MAKE A BUCKET-FIRE FOR SO AS TO STAY WARM LIKE SIMILAR FOLK IN USA DO . HEADING FROM ISIS TIMES ; Robinson becomes pescatarian, urges people to ‘get angry’ over climate change . SUB-HEADING ; Former… Read more »
A CRYPTO-GLOBALIST, & MORE, SCORED WELL FOR HIMSELF IN DUBLIN THE OTHER DAY ;
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HEADING ;
Boris Johnson gets €1,000 per minute for Dublin speech
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HEADING ;
Pendulum pays arch-Brexiteer €58,230 for being on stage for about 54 minutes
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by
Mark Paul
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https://www.irishtimes.com/business/economy/boris-johnson-gets-1-000-per-minute-for-dublin-speech-1.3784565?mode=sample&auth-failed=1&pw-origin=https%3A%2F%2Fwww.irishtimes.com%2Fbusiness%2Feconomy%2Fboris-johnson-gets-1-000-per-minute-for-dublin-speech-1.3784565
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Reading your article helped me a lot and I agree with you. But I still have some doubts, can you clarify for me? I’ll keep an eye out for your answers.
I agree with your point of view, your article has given me a lot of help and benefited me a lot. Thanks. Hope you continue to write such excellent articles.
Thanks for sharing. I read many of your blog posts, cool, your blog is very good.